Naira drops further to 318 against dollar

14:47 11/02/2016
Abuja -  The naira on Wednesday continued
its fall against major currencies on the
parallel market, closing at 318 against the
United States dollar.
Mature obligations to overseas companies
by Nigerian importers, causing acute
shortage of foreign exchange have reportedly
made the naira to fall further on Wednesday.
But the stock index climbed up to 24 000
points for the first time in almost a month,
according to a report by Reuters.
It was the third time in three days the naira
would experience a drop. The local currency,
which was traded at 310 for a dollar on
Monday and 313 on Tuesday, crashed again
on Wednesday against the dollar, amid
dwindling liquidity, the report stated.
At the interbank market, the naira closed at
199.40 to the dollar, around the peg rate of
197 to the dollar.
According to experts and forex dealers, the
naira is expected to weaken further at the
parallel market as the dollar shortage
persists after the central bank has reduced
the sale of greenback.
“The naira will continue to trade at a
premium against the dollar on the parallel
market as long as dollar supply sources are
limited,” one trader said.
The naira had traded at 306 to the dollar at
the parallel market two weeks ago.
The President, Association of Bureau De
Change Operators, Alhaji Aminu Gwadabe,
said the acute scarcity of dollars was caused
by mature forex obligations.
- News 24